Virgin Blue's Sale Picture Clouds

Despite Fast Growth, Ownership Limits Keep Bidders at Bay

By

Bill Lindsay

Updated Oct. 23, 2007 12:01 a.m. ET

SYDNEY, Australia -- Australia's second-largest airline could be up for sale by year end. But strikingly, given that Virgin Blue Holdings is among the world's fastest-growing and most-profitable carriers, potential buyers aren't lining up.

A scarcity of interested airline parties, tough financing conditions for leveraged-buyout players, and lack of a significant international network mean Toll Holdings may have no option but to retain...